New Jersey Resources Corporation (NJR)
NYSE:NJR
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New Jersey Resources
(NYSE:NJR)
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Rating:66Neutral
Price Target:
$56.00
â–²(3.47% Upside)
Action:DowngradedDate:02/04/26
The score is driven by solid core profitability but constrained by negative free cash flow and elevated leverage. Earnings-call messaging was notably constructive with a meaningful guidance raise and reiterated growth targets, while technicals show an uptrend but with overextended momentum indicators. Valuation is reasonable for the sector, supported by a mid-single-digit dividend yield.
Positive Factors
Regulated utility earnings stability
A majority of consolidated earnings coming from the regulated New Jersey Natural Gas business supports predictable, rate‑regulated cash flows and steady return generation. High single‑digit rate base growth through 2030 underpins durable earnings visibility and dividend support for the next several years.
Negative Factors
Elevated leverage
Debt-to-equity near 1.6x reduces balance sheet flexibility during a multi‑year investment cycle. While typical for utilities, elevated leverage increases interest expense sensitivity and limits capacity to absorb shocks or opportunistic investments without raising costs or altering capital plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility earnings stability
A majority of consolidated earnings coming from the regulated New Jersey Natural Gas business supports predictable, rate‑regulated cash flows and steady return generation. High single‑digit rate base growth through 2030 underpins durable earnings visibility and dividend support for the next several years.
Read all positive factors
New Jersey Resources (NJR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.51B
Dividend Yield4.01%
Average Volume (3M)537.88K
Price to Earnings (P/E)9.5
Beta (1Y)0.07
Revenue Growth13.94%
EPS Growth13.93%
CountryUS
Employees1,372
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)1.17
Shares Outstanding100,845,184
10 Day Avg. Volume671,878
30 Day Avg. Volume537,878
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)2.02
Price to Sales (P/S)2.37
P/FCF Ratio-20.13
Enterprise Value/Market Cap1.75
Enterprise Value/Revenue4.48
Enterprise Value/Gross Profit17.16
Enterprise Value/Ebitda13.06
Forecast
1Y Price Target
$56.00Price Target Upside3.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.28
Revenue Forecast (FY)$2.24B
New Jersey Resources Business Overview & Revenue Model
Company Description
New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energ...
How the Company Makes Money
New Jersey Resources generates revenue through multiple streams. The primary source is the regulated natural gas distribution segment, where New Jersey Natural Gas earns income by delivering natural gas to customers and charging for the distributi...
New Jersey Resources Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, a materially improved near-term outlook (guidance raised by $0.25), robust capital plans supported primarily by the regulated utility, and clear growth paths for Storage & Transportation and Clean Energy Ventures. The balance sheet and hedging strategy were presented as strengths that mitigate financing and customer-cost risks. The primary risks noted were execution/timing uncertainty on the optional Leaf River fourth cavern, comparability headwinds from a prior-year solar asset sale, and the elevated capital spending program which increases execution demands. Overall, positives (guidance raise, doubled S&T earnings target, hedging success, no equity issuance needed, record CEV additions, and stable utility earnings) substantially outweigh the manageable and near-term challenges.Positive Updates
Guidance Raised and Strong Earnings Outlook
Fiscal 2026 NFEPS guidance initiated at $3.03–$3.18 and subsequently raised by $0.25 to $3.28–$3.43 per share (midpoint increase of ~8.0%), marking the sixth consecutive year management has raised guidance; the raise was attributed to Energy Services' outperformance during extreme winter weather.
Negative Updates
Uncertainty on Leaf River Fourth Cavern Contracts
While compression and existing-cavern expansions to ~43 Bcf have been supported by contracts, the proposed fourth cavern (to reach ~55 Bcf) does not yet have signed contracts, creating execution and timing uncertainty (management referenced potential 2029 construction timing but noted contracts are still required).
Read all updates
Q1-2026 Updates
Positive
Negative
Guidance Raised and Strong Earnings Outlook
Fiscal 2026 NFEPS guidance initiated at $3.03–$3.18 and subsequently raised by $0.25 to $3.28–$3.43 per share (midpoint increase of ~8.0%), marking the sixth consecutive year management has raised guidance; the raise was attributed to Energy Services' outperformance during extreme winter weather.
Read all positive updates
Company Guidance
Management set fiscal 2026 NFEPS guidance at $3.03–$3.18 per share and, following strong winter energy‑services performance, raised it by $0.25 to $3.28–$3.43 (the sixth straight annual guidance raise), aligned with a 7%–9% long‑term NFEPS growth target; they reaffirmed a five‑year CapEx plan of $4.8–$5.2 billion through FY2030 (~$5.0B, ~40% higher than the prior five years) with >60% (historically ~64% of FY25 CapEx and ~70% of Q1 CapEx) directed to New Jersey Natural Gas, which is expected to contribute roughly 70% of FY2026 NFEPS. Storage & Transportation NFE is expected to more than double by 2027, Leaf River working gas capacity is planned to increase >70% to 43 Bcf by 2028 (potentially 55 Bcf with a fourth cavern), Clean Energy Ventures added 93 MW in FY25 (total 479 MW), ~10 MW in Q1 and targets >50% in‑service capacity growth over two years, FY25 total CapEx was ~$850M (Q1 ~$119M), adjusted FFO/adjusted debt is projected to remain ~20% for five years, no block equity issuance is expected, and the utility entered winter >87% hedged at roughly $2.20/decatherm (vs. Citygate spikes >$135), while customer programs (110k Save Green participants, ~30% whole‑home savings) and ~$16.5M in assistance funding support affordability.New Jersey Resources Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.15B | 2.03B | 1.78B | 1.93B | 2.91B | 2.13B |
| Gross Profit | 561.21M | 435.78M | 436.70M | 299.83M | 397.07M | 301.05M |
| EBITDA | 737.51M | 743.88M | 666.35M | 594.06M | 565.01M | 433.52M |
| Net Income | 326.80M | 335.63M | 289.77M | 264.72M | 274.92M | 117.89M |
Balance Sheet | ||||||
| Total Assets | 7.91B | 7.58B | 6.98B | 6.54B | 6.26B | 5.72B |
| Cash, Cash Equivalents and Short-Term Investments | 7.82M | 9.51M | 14.26M | 21.75M | 95.37M | 77.59M |
| Total Debt | 4.14B | 3.77B | 3.52B | 3.29B | 3.13B | 2.76B |
| Total Liabilities | 5.43B | 5.19B | 4.78B | 4.55B | 4.44B | 4.09B |
| Stockholders Equity | 2.47B | 2.39B | 2.20B | 1.99B | 1.82B | 1.63B |
Cash Flow | ||||||
| Free Cash Flow | -218.57M | -239.73M | -143.91M | -61.93M | -274.95M | -233.66M |
| Operating Cash Flow | 504.38M | 466.35M | 427.41M | 478.99M | 323.48M | 390.95M |
| Investing Cash Flow | -728.54M | -568.27M | -569.07M | -538.63M | -590.61M | -622.12M |
| Financing Cash Flow | 227.53M | 101.96M | 141.76M | 59.70M | 262.54M | 117.78M |
New Jersey Resources Technical Analysis
Positive
54.12
Price Trends
52.16
Positive
48.90
Positive
46.96
Positive
Market Momentum
0.55
Positive
58.96
Neutral
72.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJR, the sentiment is Positive. The current price of 54.12 is below the 20-day moving average (MA) of 54.18, above the 50-day MA of 52.16, and above the 200-day MA of 46.96, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 72.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NJR.
New Jersey Resources Risk Analysis
New Jersey Resources disclosed 1 risk factors in its most recent earnings report. New Jersey Resources reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New Jersey Resources Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.33B | 17.59 | 8.13% | 3.45% | 15.06% | 12.27% | |
70 Outperform | $6.27B | 21.17 | 11.62% | 3.07% | -23.15% | 157.45% | |
67 Neutral | $5.36B | 12.84 | 8.27% | 3.82% | -4.50% | 2.49% | |
66 Neutral | $5.51B | 9.48 | 13.39% | 4.01% | 13.94% | 13.93% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $7.87B | 6.77 | 12.21% | 3.92% | 1.10% | 140.04% | |
62 Neutral | $2.97B | 20.80 | 9.13% | 2.15% | 17.15% | 15.00% |
* Utilities Sector Average
NJR
New Jersey Resources
54.59
7.43
15.75%
CPK
Chesapeake Utilities
124.14
-1.51
-1.20%
SR
Spire
90.68
15.51
20.63%
SWX
Southwest Gas
86.71
17.15
24.66%
UGI
UGI
36.67
4.94
15.56%
OGS
ONE Gas
84.95
11.89
16.27%
New Jersey Resources Corporate Events
Business Operations and StrategyFinancial Disclosures
New Jersey Resources Raises 2026 Earnings Guidance After Q1
Positive
Feb 2, 2026
On February 2, 2026, New Jersey Resources reported fiscal 2026 first‑quarter results for the period ended December 31, 2025, posting consolidated net income of $122.5 million, or $1.22 per share, down from $131.3 million, or $1.32 per share,...
Executive/Board ChangesShareholder Meetings
New Jersey Resources Shareowners Back Directors and Governance Plans
Positive
Jan 23, 2026
At its recent annual meeting, New Jersey Resources Corporation shareowners elected five directors — Jane M. Kenny, Amy B. Mansue, Sharon C. Taylor, Stephen D. Westhoven and William T. Yardley — to three-year terms expiring in 2029, whi...
Business Operations and StrategyFinancial Disclosures
New Jersey Resources Reports Strong Fiscal 2025 Results
Positive
Nov 19, 2025
New Jersey Resources reported strong financial results for fiscal 2025, with a net income of $335.6 million, marking a significant increase from the previous year. The company achieved the high end of its net financial earnings per share guidance ...
Business Operations and StrategyExecutive/Board Changes
New Jersey Resources Approves 2026 Incentive Plan
Neutral
Nov 6, 2025
On November 4, 2025, New Jersey Resources‘ Leadership Development and Compensation Committee approved the fiscal year 2026 Officer Annual Incentive Plan for its named executive officers. The plan aims to align executive objectives with corpo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.